DETROIT — General Motors Acceptance Corporation today said it has decided to retain ownership of its commercial mortgage business. The decision comes at the completion of GMAC's evaluation of funding alternatives, which included the possible sale of all or a portion of the commercial mortgage business (which is conducted through a wholly-owned subsidiary named GMAC Commercial Holding Corp.).
Earlier this year, GMAC indicated it was pursuing a possible sale of the commercial mortgage business as a means of continued access to capital for the growing concern. Since then, GMAC Commercial Holding Corp. has continued to post record operating results, with origination volume and earnings during the first nine months of 2003 already at or above the levels achieved during the full year of 2002. In addition, the overall capital markets environment has improved considerably from the difficult environment in 2002 and early 2003.
"Since our evaluation of a possible sale began, the commercial mortgage business has continued to perform extremely well," said GMAC Chairman and President Eric A. Feldstein. "In addition, through our recent discussions with major industry participants we now believe that alternative large-scale funding mechanisms should be available without requiring a sale of the business. As a result, we will seek to establish alternative funding mechanisms to provide for the ongoing capital requirements of the commercial mortgage business while providing liquidity relief to GMAC."
